Consumer Buying Behaviour-1

8/10/2019 Consumer Buying Behaviour-1

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1.

INTRODUCTION

Research Methodology

Research methodology is the master plan for conducting the research

study. It should be noted that a research methodology is unique to

research design. As the project undertaken by me primarily operations

of Reliance Fresh Store emphasizes on the store. Descriptive research

involves the description of the characteristics of the variable,

description of the extent of association between variables and it allows

the researcher to inter about the variables. Like in this case, the

variables were analyzing and it allows the researcher to inter about the

variables. The variables were analyzing foot-fall, catchment area and

the average ticket size of the customers. Another reason was that I

worked on the data provided by the store i.e. it was secondary data

(total foot-fall, total sales, total no. of customers etc) for a month and I

knew which parameters to work upon. Also I interviewed the customer

and observed their behaviour towards store.

I gathered data of one month from the Reliance store i.e. from 1 st

September to 31st September as the sample size. It included total


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foot-fall, total customer, total sales, Average sales per customers No. of

items sold and conversion ratio. For the questionnaire filling I took a

sample of 15 people from the nearby locations. I also interviewed those

who visited the store regarding store ambiance, assortments of products

and service provided.

The type of sampling procedure which I have chosen is convenience

sampling is a generic term that covers wide variety of As-hoe

procedures for selecting respondents.

Since sampling units were accessible, convenient, easy to measure,

co-operative and articulate, I used convenience sampling. I interviewed

the customers and analyzed the given data through my own

convenience and expertise.


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2.

CONCLUSION

It can be concluded that behaviour pattern of the customer is influence

by the product and service quality price and brand, consumer buying

pattern is influenced by the store layout, ambiance, behaviour of sales

personnel, and after sales service of Reliance Fresh. Most of the

customers are ready to buy some product from another retail outlet, if

they are not finding good quality of products there in Reliance Fresh.

Means customer want up gradation of the product at Reliance Fresh. So

that Reliance Fresh can face a tuff competition with the other retail

outlet.


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3.

CONSUMER BUYING BEHAVIOUR

Understanding consumer buying behaviour begins by understanding

the general steps consumers go through before, during and after the

purchase. By understanding each step, marketers can conduct

marketing efforts to encourage customers to gravitate towards a

purchase, and once a purchase has been made, find a satisfaction with

their choices.

Stages of the Consumer Buying Pattern:

Problem Recognition (awareness of need),

Information search, Evaluation of Alternatives, Purchase decision,

Purchase, Post-Purchase Evaluation.

CONSUMER

Buying behaviour will be a primary force in determining how this

transition will evolve. Getting closer to the customer in todays highly

competitive landscapes essential for the entire industry and is no longer

just a retail issue.


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It requires all organizations across the supply chain to work as a single

enterprise, sensing and responding rapidly to consumer demand in a

co-ordinate manner. Detailed analysis of the changing pattern of

consumer demand, shopping trends etc,

TYPES OF BUYING BEHAVIOUR

Complex buying behaviour is where the individual purchases a high

value brand and seeks a lot of information before the purchase is made.

Habitual buying behaviour is where the individual buys a product out

of habit.

Variety seeking buying behaviour is where the individual likes to shop

around and experiment with different products.

Dissonance reducing buying behaviour is when buyer is highly

involved with the purchase of the product, because the purchase is

expensive or infrequent

PROBLEM STATEMENT

Make a comprehensive study of Reliance fresh & know the buying


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pattern of FMCG product at Reliance Fresh. Consumer buying pattern

of FMCG product will be a primary force in determining how this

transition will evolve. Getting closer to the consumer in todays highly

competitive landscape is essential for the entire industry and is no

longer just a retail issue. It requires all organizations across the supply

chain to work as a single enterprise, sensing and responding rapidly to

consumer demand in a co-ordinate manner. Detailed study of the

changing patterns of consumer demand, satisfaction and shopping

trends can be analyzed through a FMCG retail players & can

strategized for reliance FMCG.


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4.

RESEARCH OBJECTIVES

Research is one of the most vital parts of the survey and is related to

collection of information and knowledge. Marketing research is

defined as the systematic design, collection, and analysis reporting of

data and findings relevant to a specific marketing situation facing the

company.

My objection behind this study as a whole was to understand the exact

operations of the Reliance Fresh Stores.

My main research objectives were as follows:

1.

Building knowledge base on customer, competitors and

marketing for Reliance store and transferring that knowledge

between strategic business unit and among key managers.

2.

Conducting primary market research for reliance fresh to ensure

that projects meet there objectives are cost effective and avoid

duplication of other work.

3.

To measure the no. of customers visiting Reliance fresh and their

conversion ration.

4.

To calculate the average amount of purchasing day of the


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customers.

5.

To understand the consumer response and their preferences.

6.

To anticipate prospective consumers for the store.


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5.

RESEARCH METHODOLOGY

It is the specification of the methods and procedures used for acquiring

the information needed. In short, it is the master plan for conducting the

research study. It should be noted that a research methodology is

unique to a research design

It includes:

Re-Type

Sample size

Sampling procedures

Data collection techniques

Time of collection

Limitation of research

Methodology:

The methodology of research study was descriptive research.

Descriptive research includes surveys and fact finding investigation.

The major purpose of descriptive research is, description of state of

affairs as it exists at present


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Type of Research

Descriptive type research has used to complete the project. This

research is based on fact finding enquires and the variables are totally

independent and uncontrollable.

Data collection:

Primary Data

Primary data of research are collected from direct resources (customer

of Reliance fresh) through questionnaire.

Secondary Data

Secondary Data which are used for research to know the history scope

of Retail industry are collected from already available resources like

net and other sources.

Sampling Technique

Simple Random sampling is used

A sample size of 70 respondents has been taken

Data Collection: Primary data for research are collected from direct

resources i.e. customer of Reliance fresh who visit retail outlet through

questionnaire.


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Sample size

70 respondents has selected as sample size for research

Data representation technique and tools

Columns chart & Pie chart has used for representation.

Time of collection

Tine of collection of my research study was 1 month of analysis the

catchment area, Footfall and average Ticket size of the customers. In

one month time I was able to understand the trend of the store and also

how various store related activities like dumping, indenting,

markdown, assortments of the product were done.

Limitation of the study:

The study was limited to few Reliance Fresh outlets which is located

Mumbai There can be response bias from the respondents, which limits

the validity of findings.

Authenticity of the response of the customer cannot be

ascertained.

Most of the consumer prefer to go for local market


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There was limited consumer base

Advertising strategy is not good

Lack of expertise

Finally the time constraint.


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6.

HYPOTHESIS OF RESEARCH

A research hypothesis is a specific, clear, and testable proposition or

predictive statement about the possible outcome of a scientific research

study based on a particular property of a population, such as presumed

differences between groups on a particular variable or relationships

between variables. Specifying the research hypotheses is one of the

most important steps in planning a scientific quantitative research

study. A quantitative researcher usually states and a priori expectation

about the results of the study in one or more research hypotheses before

conducting the study, because the design of the research study and the

planned research design often is determined by the stated hypotheses.

Thus, one of the advantages of stating a research hypothesis is that it

requires the researcher to fully think through what the research question

implies, what measurements and variables are involved, and what

statistical methods should be used to analyze the data.

Testing of Hypothesis:

Sales

Weekdays Average = 62,708.23


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Weekends Average = 95,086.73

H0 (Average sales of weekdays = Average sales of weekend)

H1 (Average sales of weekdays Average sales of weekends)

H0: There is a significance difference between expectation and

satisfaction level of sales

H1: There is no significance difference between expectation and

satisfaction level of sales

At 5% level of significance H0 is accepted

Customers

Weekdays Average = 380.10

Weekends Average = 482.8

H0 (Average sales of weekdays = Average sales of weekend)

H1 (Average sales of weekdays Average sales of weekends)

H0: There is a significance difference between expectation and

satisfaction level of customers.

H1: There is no significance difference between expectation and

satisfaction level of customers.

At 5% level of significance H0 is accepted


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7.

ANALYSIS

UNDERSTANDING THE BUYING BEHAVIOUR OF

RELIANCE FRESH CONSUMERS

DEFINITION

Purchase decision making pattern that is a complex amalgam of needs

and desires, and is influenced by factors such as the consumer's

(1) Societal role (parent, spouse, worker, etc.),

(2) Social and cultural environment and norms, and

(3) Aspirations and inhibitions.

Buying Behaviour is in the Advertising, Marketing, & Sales and

Purchasing & Procurement subjects.

Buying Behaviourappears in the definitions of the following terms:

marketing research, advertisement (ad), ACORN, economic

environment, activities, interests, opinions (AIO) and consumer

research.

Buying Behaviourappears in these other term: consumer buying

behaviour.


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8. INTERPRETATION

(1). Gender of the consumer

'Arithmetic Mean'

A mathematical representation of the typical value of a series of

numbers, computed as the sum of all the numbers in the series divided

by the count of all numbers in the series.

Arithmetic mean is commonly referred to as "average" or simply as

"mean".The most commonly used type ofaverage.To find the arithmetic mean

of aset of nnumbers, add the numbers in the set and divide the sum

by n.

Arithmetic Mean = X/n

WhereX = Individual value

n = Total number of values

Male Female

15 27

Male

Female
http://www.mathwords.com/a/average.htmhttp://www.mathwords.com/s/set.htmhttp://www.mathwords.com/s/set.htmhttp://www.mathwords.com/a/average.htm


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Question X/n Mean

Male 15/70 0.22

Female 27/70 0.39

Analysis -

Data collected for project from 30 responded in which 27 are female

and 15 are male of total respondent.

Interpretation -

Intotal respondent we analyses that most of the customer in this store is

female and their demand always consider at the time of taking the

decision. Company should try to attract new male customer by provide

new scheme on their customer.

(2). Age of customer

10-20 21-50

51 &

above

15 23 12

0

50

100

150

200

250

10-20 21-50 51 & above


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Age of customer X/n mean

10-20 15/70 0.22

21-50 23/70 0.3351&above 12/70 0.18

Analysis -

Data collected for project from 30 responded in which 15 the ages

between 10 - 2O are 23 are between age of 21 - 5O which are and 12 are

between age of 51 & above of total respondent.

Interpretation -

In total respondent we analyses that most of the customer are youth. In

my observation l found that most new people believe in convenience

shopping it help the company to keep management such type which

understand the problem of customer easily and rectify the problem

effectively

(3). How offer do you shop

Daily ( ) Week ( ) Fortnightly ( ) Once in month ( )

Daily Week Fortnightly

Once

in

month

8 26 9 12


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How offer do you shop X/n Mean

Daily 8/70 0.12

Week 26/70 0.38

Fortnightly 9/70 0.13

Once in month 12/70 0.18

Analysis -

Data collected for project from 30 responded in which 8 are like to

purchase daily and 26 are like to purchase weekly and 9 are likely to

purchase fortnightly, 12 likely to purchase once in a month of total

respondent

Interpretation -

In total respondent we analyses that most of the customer are likely to

purchase on weekend .in my observation I found that more scheme

should be provided on weekend.

(4). what do you mostly shop for at mentioned store?

Vegetables ( ) Grocery ( ) cosmetic product ( ) all product ( )

0

50

100

150

200

250

Daily Week Fortnightly Once in

month


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Vegetable GroceryCosmetic

product

All

Product

15 16 9 20

Mostly shopping

done

X/n Mean

Vegetable 15/70 0.22

Grocery 16/70 0.23Cosmetic product 9/70 0.13

All Product 20/70 0.29

Analysis -Data collected for project from 30 responded in which 20

customer are like to purchase all product and 15 are like to purchase

vegetables and 16 are likely to purchase grocery, 9 likely to purchase

cosmetic product of total respondent.

Interpretation -In total respondent we analyses that most of the

customer are like to purchase all product in the store. Company should

try to retain the customer and should increase the variety of cosmetic

product& grocery

(5). Preference of shopping

Quality ( ) Brand ( ) Price ( ) one stop shop

Quality Brand Price

One

stop

shop


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Preference of

shopping

X/n Mean

Quality 12/70 0.18

Brand 20/70 0.29

Price 9/70 0.13

One stop shop 13/70 0.19


customer are believe in reliance brand and l3 are like to purchase in one

stop shop and 12 are like to purchase quality product, only 9 respondent

consider price.

Interpretation -In total respondent we analyses that most of the

customer are believe in reliance brand like to purchase qualitative

product in stop shop Here I observed that people want to purchase fresh

and original product and want better service.

(6). which store do you kept in preference for purchasing

Quality

Brand

Price

One stop shop

12 20 9 13


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Reliance Fresh ( ) Big apple ( ) other ( ) Local market

Localmarket

Reliancefresh

Bigapple

Other

24 18 17 10

preference for

purchasing

X/n Mean

Local market 24/70 0.35Reliance fresh 18/70 0.26

Big apple 17/70 0.25

Other 10/70 0.15


customer are like to purchase from local market and 18 are like to

purchase from reliance fresh and 17 are likely to purchase from Big

apple, 10 likely to purchase other of total respondent.

Interpretation --In my observation l found till today organised retail

0

50

100

150

200

250

300

Local market Releince

fresh

Big apple Other


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sector didn't penetrate the market. Company should try to open new

convenience store and provide more scheme and good service to

customer to penetrate the market Initial it may be costlier, but it will

give long term benefit.

(7). Do advertisement and promotion influence your shopping

decision?

Yes ( ) No ( )

Yes No32 17

Influence in shopping

decision

X/n Mean

Yes 32/70 0.46

17 17/70 0.25

Analysis -Data collectedfor project from 30 responded in which 32customer are like promotion scheme and 17 are those people which say

promotion scheme doesn't effect on purchasing

0

100

200

300

400

500

Yes No


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Interpretation-In my observation I found promotion scheme is must

to sustain customer attract customer & influence the purchasing.

(8). Are Promotion scheme easy to understand

Yes ( ) No ( ) some time ( )

Yes NoSome

time

15 12 11

Promotion scheme X/n Mean

Yes 15/70 0.22

No 12/70 0.18

Sometime 11/70 0.16


customer say - yes and 12 are those which say -no and 11 say

some-time.

Yes

No

Some time


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Interpretation-Company should try making promotion scheme easy

understandable, promotion scheme should be in both in English &

Hindi.

(9). How likely are you to recommend Reliance Fresh to a friend or

relative? Would you say the chances are?

Excellent ( ) Good ( ) Fair ( ) Poor ( )

Excellent Good Fair Poor12 22 19 8

Recommend Reliance

Fresh

X/n Mean

Excellent 12/70 0.18Good 22/70 0.32

Fair 19/70 0.28

0

50

100

150

200

250

Excellent Good Fair Poor


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poor 8/70 0.12

Analysis -Data collected for project from 30 responded in which 12 customer say

excellent and 22 say good, 19 say fair and 8 customers are those say poor.

Interpretation -In my observation I found that only 466% customer are fully satisfied

from the store company should try satisfy the customer by providing better service and

rectify their problem immediately.

(10). which form of advertisement do you think is most effective?

Print ( ) TV ( ) Radio ( ) telephone ( )

Print TV Radio Telephone

15 20 10 25

Advertisement effect X/n Mean

Print 15/70 0.22

TV 20/70 0.29

Radio 10/70 0.15

Telephone 25/70 0.36

0

20

40

60

80

100120

140

160

180

200

Print TV Radio Telephone


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Analysis -Data collected for project from 30 responded in which 20 customer say TV

and 15 say print, 10 say Radio and 25 customers are say telephone.

Interpretation -According responded result company can choose telephone as best for

advertisement and call industrial for attracting the customer.

(11) Did you get help from CSA when asked?

Yes ( ) No ( ) sometime ( ) Never ( )

Yes NoSome

timeNever

19 15 18 10

Help from customersupport assistance

X/n mean

Yes 19/70 0.28

No 15/70 0.22

Sometime 18/70 0.26

Never 10/70 0.15

Analysis -Data collected for project from 30 responded in which 19 customer say yesand 15 say no which 18 say are some time and 10customer are say never.

Interpretation -According respondent customers are not fully satisfied should recruit

new skilled employee for better performance.

0

50

100

150

200

250

Yes No Some time Never


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9. FINDING

1. Majority of customers here is female

2. Majority of customers are young

3. Majority customers like to purchase all goods from Reliance fresh.

4. Customers like one stops shopping.

5. Local market till today is the first choice of customer

6.

Advertisement is the biggest way to attracting the customer.

7. Promotion scheme not so easy to understand for customer.

8. Most of customer is not fully satisfied with store.

9. Tele phone is the best way for attracting the customer

10.Shortages of skilled workers


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10.LIMITATIONS

The project has some limitations because it is totally based on efforts of individuals.

Peoples may be careless and may not give correct answer to the questions, because of so

many reasons.

It is totally based on personal efforts of individuals.

Some of the consumers are unable to understand the questionnaire.

Language is one of the worst problem, some of the consumers are unable to

understand English.

Some consumers are not interested in filling questionnaire.


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11.

SUGGESTION

1.

More promotion scheme should be used to penetrate the market

2.

Skilled employees should be higher because mostly customers are young

3.

Promotion scheme should in such way that customer can understand easily.

4. Service of store should be providing in such way which full the need of the

customer.

CONCLUSION

With the growing retail concept Reliance Fresh is really a fresh air in the arena of

vegetable and fruit market. But due to some political and local problems all Reliance

stores are not allowed to keep vegetables and fruits according to their goal.


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12.APPENDIX

RELIANCE FRESH

QUESTIONNAIRE

NAME-

GENDER-

AGE -

1- How offer do you shop

Daily ( ) week ( ) fortnightly ( ) once in month ( )

2- What do you mostly shop for at mentioned store?

Vegetables ( ) Grocery ( ) cosmetic product ( )

3- Which store do you shop?

Reliance Fresh ( ) Big apple ( ) other ( ) Local market

4- Preference of shopping

Quality ( ) Brand { ) Price ( ) one stop shop

5- Do advertisement and promotion influence your shopping decision?

Yes () No ( )


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6- Are Promotion scheme easy to understand

Yes ( ) NO ( ) sometime ( )

7- How 'likely are you to recommend Reliance Fresh to a friend or relative?

Would you say the chances are?

Excellent ( ) Good ( ) Fair ( ) Poor ( )

8- Are the Price of Reliance fresh is lower than the other competitor

Yes ( ) No ( ) Equal ( ) no idea ( )

9- Which form of advertisement do you think is most effective?

Print ( ) TV ( ) Radio ( )

10- Did you get help from CSA when asked?

Yes ( ) No ( ) some time ( ) Never ( )

11- Do you think branded products are better than unbranded products?


12. Will you like to switch your brand preference if you get some promotional scheme

with another brand?



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13.Influence of Advertisement on Purchase Decision

Agree Disagree

Strongly Agree Strongly disagree

14- Influence of Peer group on Purchase Decision

Agree Disagree


15- Influence of Family members on Purchase Decision

Agree Disagree


16- Influence of Product features on Purchase Decision

Agree Disagree


17- Influence of Price on Purchase Decision

Agree Disagree


18- Influence of Quality on Purchase Decision

Agree Disagree


19- Influence of Brand name on purchasing decision

Agree Disagree



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20- What was the reason for the delay between the purchase decision and the actual

purchase?

1. Financial constraints

2. Waiting for more innovative product

3. Waiting for market response

21- What influenced you to buy the above stated brand(s) ?

1.

Advertising 2. Shop Display

3.Word of mouth 4. Family/Friend/Relatives

5. Attractive packaging 6. Any Other

7. Dealer


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BIBLOGRAPHY

Referred Books-

R. Panneer selvam, Research Methodology, Published by: Ashok K Ghosh, PHI

learning private ltd. Haryana, on April 2012.

C.R. Kothari, Research MethodologyMethods & Techniques (second revised

edition) Published by: New age international (p) limited, New Delhi on 2004.

Referred Site

http://en.wikipedia.org/wiki/Reliance_Industries on 25th Aug 2014

http://books.google.co.in/books/about/Phenomenological_Research_Methods on

20th Aug 2014.

http://www.ril.com/html/business/business_retail.html on 24th Aug 2014.
http://en.wikipedia.org/wiki/Reliance_Industries%20on%2025th%20Aug%202013http://books.google.co.in/books/about/Phenomenological_Research_Methods%20on%2020th%20Aug%202013http://books.google.co.in/books/about/Phenomenological_Research_Methods%20on%2020th%20Aug%202013http://books.google.co.in/books/about/Phenomenological_Research_Methods%20on%2020th%20Aug%202013http://books.google.co.in/books/about/Phenomenological_Research_Methods%20on%2020th%20Aug%202013http://www.ril.com/html/business/business_retail.htmlhttp://www.ril.com/html/business/business_retail.htmlhttp://books.google.co.in/books/about/Phenomenological_Research_Methods%20on%2020th%20Aug%202013http://books.google.co.in/books/about/Phenomenological_Research_Methods%20on%2020th%20Aug%202013http://en.wikipedia.org/wiki/Reliance_Industries%20on%2025th%20Aug%202013

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